The United States has once again reached the point of reaching the national debt limit. Next Tuesday, the US government will reach the national debt limit of 36 trillion or 36 trillion dollars. Treasury Secretary Janet Yellen said special measures will be taken to continue government spending. Donald Trump is going to take office as the President of the United States on January 20. This situation was created before that. News from CNN
Reaching the national debt ceiling means putting pressure on members of Congress. The US government has never defaulted. Members of Congress must act now to ensure that reality does not materialize. If the US defaults, the global financial system will be turned upside down. Janet Yellen said, this special system should continue until March 14. This special arrangement includes secret accounting, matters not normally made public. Republicans control Capitol Hill. But there is no consensus among them on how to deal with this debt ceiling issue. They have some big agendas. They also want to influence Congress along party lines on issues like border security, energy, tax cuts. Apart from this, the financial bill of 2025 has to be passed. This special arrangement, which started on October 1, will end on March 14.
The US national debt ceiling was suspended in June 2023. It was valid till January 1. Before that, the country’s national debt limit was 31.4 trillion or 3.14 million dollars. In the United States in 1939, the first national debt limit was set at 45 billion or 4,500 billion dollars. After that, this loan limit has to be increased 103 times till now. In October 2023, the country’s national debt rose to 98 percent of the permitted limit, up from just 32 percent in 2001.
After being elected in 2016, Donald Trump gave tax cuts to the wealthy. Then the US government had to borrow huge amounts to provide incentives to people during covid. Due to this, the debt of the country has increased a lot in the last few years. Now if Trump cuts the rich again, the tax revenue will decrease. Analysts believe that Trump is thinking about lifting the debt ceiling from that thought.